No M'Lord
The FT may have lost a High Court battle to print the Northern Rock investment memo, Gordon somewhat pathetically at PMQs claimed it was "commercially sensitive" information to get him off the hook discussing it. Vince Cable lashed into him when he made that "absolutely bogus" claim. £24 billion of taxpayers money on a bail-out is a legitimate matter of public interest.It is definitely not secret any more. Guido told you 4 hours ago where it could be found online in the U.S., it is as of now the top Google search result for "Northern Rock Summary". You can't keep politically expedient secrets in an open source world...
UPDATE : Our old friends Schillings are at it again. No Pasaran!
23 comments:
It's almost as though Vince was better than Dave...
This is great stuff Guidot.
£24 billion of taxpayers money on a bail-out is a legitimate matter of public interest.
Exactly. Why is Zanulab wasting our money, when it should have gone to the wall? Even ex-MPC member Willem Buiter said so, "Not too big to fail", were his words I believe.
So why? Too many votes lost for the snot-gobbler?
Misleading Parliament?
Vince Cable has proved yet again HE should have been the leader last time round and this time.
Cameron should invite him to join his Treasury Team!
As Buiter said,Second, it is hard to argue that the survival of Northern Rock is necessary to avoid a genuine threat to the stability of the UK financial system, or to avoid a serious disturbance to the economy. The bank is not ‘too large to fail’. As the fifth largest mortgage lender in the UK, it is not systemically significant.
So it's just political, then. Labour 'heartlands' (or arse-lands to be more precise) would suffer.
> As the fifth largest mortgage lender in the UK, it is not systemically significant.
Actually Northern Crock was the #1 mortgage lender at the time of the credit crunch.
Since MEW is the only thing masking the real (bad) state of the economy, Gordo has to keep the game going, however much it costs taxpayers.
This could be gordos watergate if we are lucky I like the sound of "Northern rockgate".
It seems I now own shares in a bank do you think they would mind if i borrowed some computer equipment or some paper and pens? and will I get a dividend?.
Seems to have been taken down as a breach of copyright
" The document "Northern Rock Summary" has been removed from Scribd
This content was removed at the request of copyright agent J. Afia of Schillings o/b/o Northern Rock, plc
For more information, please send questions to support@scribd.com "
Well, it's been pulled off scribd by some eager lawyer. Time for the mirrors to kick into action, please!
Dave is shit, this is a fact - its only that Gordon is even more shit!
the two most out of touch polititians in the world today!
no wonder no one votes for them!
when darling ok the bail out he had every idea that it would go this far, and to quote vince this twice the primary education budget and 4 times the aid budget.
so being as the small investers were efectively protected ie under 33k then just how many people are being are being protected with over 33K i would think this minority may have been on a very good rate of interest.
darling shouldnt have done it or capped a relief fund at 1bn , this is incompetence , injustice and aproblem of this goverments own making, merv said it when the tripartait SFO, Treasury and BOE was set up.
he should have answered vinces question with meaning and sincerity, hes pissing on the tax payer and no one sees it yet.
Read it while you can:
http://72.14.253.104/search?q=cache:prp793BJGQ4J:ftalphaville.ft.com/blog/2007/11/13/8844/project-wing-northern-rock-executive-summary/
Cameron is not shit he is very smart.
He is waiting for the wheels to fall off and keeping his power dry.
For what it is worth.
IMO
If I was his political adviser I would tell/order him to do the one thing I never do, and that is to shut the fuck up, as much as possible.
There is no point in him trying to save this country's economy and by implication this criminal Labour government, from the opposition front bench.
We do that by paying higher taxes for several years, while dealing with rampant stagflation.
All Cameron will do is sack about 1-2 million useless public sector workers put taxes up to pay off Gordon's borrowings, smile nicely and retire to the his CLUB for a whiskey and tonic.
Apart from that and not picking his nose in public and EATING IT ever,and smiling lots, thats about all he can do.
Been there, seen that, bought the T-Shirt. Just a shame we had to waste 15 years of our lives, and see our civil liberties royaly fucked to death, ( which is no fun I can tell you, just ask Charlie boys butler, when he gets his voice back )for no good worthwhile reason.
A particular shame because things seemed to be going so well back in 97. But then thats bullshit democracy for you.
How else were the cunts going to get us to "work till we drop" and beg for more laws and more prisons to put ourselves and our own children in?
Clever thing democracy. The ruling elites get exactly what they always wanted. While we do all the work and take all the responsibility.
Sorry to be a bit thick in all this, but can somebody explain in words of one syllable what exactly ore Northern Rock DOING with all this cash? Paying off debts? Still lending it out at stupid rates? Financing a few weeks hols in the Swiss alps for the directors? WHAT???
Word verif: ic rofl. Bloody hell! How appropriate..
See also Wikipedia talk:
http://en.wikipedia.org/w/index.php?title=Talk%3ANorthern_Rock&diff=171613987&oldid=171613444
"Sorry to be a bit thick in all this, but can somebody explain in words of one syllable what exactly ore Northern Rock DOING with all this cash?"
They were borrowing money on the city money markets on short terms - say maximum 5 years, and using this to finance 25 year mortgages. Thing is, that when the 5 years is up, they need to pay back the capital they were loaned, but they can't do that because the 25 year mortgage has not been paid off. So they pay off the 5 year finance by taking out another 5 year loan, and use the bulk of the mortgage interest to pay the interest on the first 5 year loan. They then keep doing this for the duration of the mortgage. You can imagine a 25 year mortgage that was actually financed by taking out 5 x 5 year loans sequentially and rolling them over, with the interest paid on the mortgage going to pay the interest on those loans.
Problem is, the credit crisis in the city caused the big merchant banks to say to Northern Rock - "Fuck off, we want our money back and we aren't going to give you any money to roll over your debts". So Northern rock was left in the unfortunate position of having to pay back a large part of its mortgage debt - but with no one to pass the debt on to. Thus it had a severe cashflow problem, certainly big enough to cause it to fail. So it was forced to go to the BoE which acted in its capacity as lender of last resort.
Really, the interesting thing about this is that NR is a symptom of the real problems in the market. By Christmas NR will have taken out £30bn of credit from the BoE. That will mean that it is still the case that no-one else will fund NR and roll-over their debt, even though in principle their business model is not that screwed up. That shows just how bad the credit crisis still is. At the same time no-one will buy NR unless the BoE guarantees to continue to fund the £30bn - because no-one else can get hold of £30bn at competitive rates, because of the credit crisis.
So ironically NR is the (fairly) innocent victim of other peoples folly. Their mortgage book is good, their borrowers continue to pay their debts and interest. Britain and the US pursued a daft inflationary policy after the dot.com boom to avoid going into a recession like most of Europe did. It caused an excess of ridiculously cheap credit that led to reckless investing. That reckless investing has come back to haunt us. So we will get a recession, plus all the debt from our attempts to avoid the last recession in 2001. Not a good situation.
Still, for us Tories that know how to turn the pigs ear of a socialist economy into a capitalist silk purse, there will be plenty of real-estate bargains in a few years time. You need a good bust to benefit from the next boom. And I do like a good bust....
Anon 5:13am - read the excellent Liar's Poker (Michael Lewis) to see why borrowing short (5 yrars ) and lending long (25 years) is a pure punt not prudence.
Anon agree up to para 4, for the reasons stated above. I know the US is different because of the punters'; obsession with fixed interest, but it is still a dangerous game.
@tuscan tony: most of the commentary I have seen has been aimed at putting the blame on NR just to avoid the impression that someone else was to blame. The city doesn't want the blame, the BoE doesn't want the blame and the government doesn't want the blame. In much the same way that Marconi failed because of Tony Blair and Gordon Brown but the Marconi management was blamed for the dramatic change in the business environment that was caused by the Blair/Brown 3G licence fiasco.
Bear in mind that anyone stating an opinion in the press probably has a finger in a relevant pie somewhere....
It's back on, I think.
http://www.scribd.com/people/view/135659-anon-53422
Thanks to both of you for this. Most grateful.
The summary is still available from the google cache...
Zorro.
> This content was removed at the
> request of copyright agent J. Afia
> of Schillings o/b/o Northern Rock,
> plc
Sure but it's still in Google's cache. Just click on the 'cached' link.
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